Bank Stocks

screaming buy

book value is like $80 a share and the dividend yield should jump to 25% or so
 
my guess is that it's a mad rush to cover short positions and the geniuses who bought 30000 $30 puts last week need to buy it up as well

never traded puts and from what i remember those guys now have the right to sell them at $30 a share or something like that
 
anything financial is down big in heavy volume today. some names like goldman sachs are already double normal volume. bear stearns is over 100 million shares traded already. in the last 7 days every share of bsc has been traded at least twice

i guess everyone who thought it was a great deal at $30 on friday doesn't think so anymore
 
"Once in a Generation Opportunity to Buy Bank Stocks" - Says analyst at Punk Ziegel.


Not sure I agree... anyway, I'm already long bank stock.
 
Growth (!?!?) of $10,000: KBW Regional Banking Index Through Feb 2008
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Dividend Yield4.13%

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Note to the technicians and the Bollinger Boys - KRE doublebottomed recently.

KBW Regional Bank ETF Making a Double Bottom? - Seeking Alpha




Time to pick me up some...
Click to expand...

The author is claiming it is a 6 percent yield, the yield of the securities as of last night is actually 4.13 percent. The 6 percent yield is probably considering the payout of the Synovous Financial subsidiary which was distributed as cash to shareholders as a dividend instead of return of capital which is what it was.

KRE continues to make lower highs. The top in KRE after the latest Fed action was 39.71 versus 41.93 for the December Fed action on December 12th when it was thought the FED was going to make KRE a buy (KRE is down 13.6 percent since then) :
http://www.early-retirement.org/forums/f28/woohooo-short-squeeze-31811.html

Until KRE rallies to a higher high over the 200 day average I see no confirmation of an uptrend. However for anyone willing to play the KRE falling knife game with KRE at 35.07 you could buy the ETF with a stop at 31.75 risking about 10 percent loss for a potential gain of 20 percent plus if the bank stocks are actually going to turn around and exceed their December highs. Personally I find the 2-1 odds on that play unattractive myself but an understandable risk.

I will continue to await my 26-28 price range.
 
this richard howard guy doesn't know what he is talking about

first no person who is into technical analysis uses the regular line chart, we all use candlesticks

second the supposed second bottom is not a bottom and too high to make it a real double bottom

third kre just bounced off another resistance line a few days ago and is now heading back down
 
this technical analysis thing doesn't work, we had a double bottom
 
Is anyone taking a look at WB? I was considering it in the 12-13 dollar range perhaps closer to the next earnings report - or after.

I would guess they have to cut their div again and will take another loss.
 
Dawg52 said:
I would like to say no but I'm sure DVY owns this piece of crap. And I own DVY.

WB: Summary for WACHOVIA CP - Yahoo! Finance
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At what point is DVY going to be throwing out financial stocks that don't meet the dividend criteria? It would seem with 1/2 of their stocks in the financial sector that many will not meet their stated investment criteria and be replaced? I wonder how often they do that?
 
WB to 5? Some of these bank stocks are going to be good long term holds at some point. lol
 
i'm watching the charts every few days

usually you will see the average daily price for the last month or so start to trend up while it's still dropping. once that happens it's either a short covering rally, or the pro's buying in while trying to scare the sheeple on CNBC and in the print media

seeing this in BAC and JPM seems to be stabilizing
 
So you guys buying KRE at $22 - dropping 5-10% everyday now. Though the temptation to wait longer is always there

-h
 
I bought KRE starting at 44 and kept buying all the way down to 26, I give up but I'm holding.
 
I bought KBE at $26 and change this past Friday. Apparently 2 days too soon though. Catching falling knives can be hard. If I had more money to throw into this puppy (or KRE) I'd be doing it, but I'm already 100% equities.

Anyone else jumping on the KRE/KBE bandwagon at these prices?
 
The problem I have with KBE is it contains too many potential IndyMac banks.
I prefer individual issues like ASBC which although missing earning still earned more .37 than its dividend .32 while increase loan loss reserves. Or BB&T which raises its dividend last month for the 37 consecutive year. Of course even relatively conservative banks like Wells Fargo are being trashed. I'd just like to think (or is more like hope and pray) when the dust is settled the banks that stuck with sound banking principals will still be standing with higher market share, while the IndyMacs are buried with the rest of the toxic waste.
 
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